Portland General Electric Co (POR)

Clean Air Act - PGEs operations, principally its thermal generation plants, are subject to the
federal Clean Air Act (CAA). Primary pollutants addressed by the CAA that affect PGE are sulfur dioxide (SO2), nitrogen oxides, carbon monoxide, and
particulate matter. State governments also monitor and administer certain portions of the CAA and must set standards that are at least equal to federal standards. Oregons air quality standards currently equal or exceed federal standards.

PGE manages its air emissions by the use of low sulfur fuel, emission controls, emission
monitoring, and combustion controls. The SO2 emissions allowances awarded under the CAA, along with expected future annual allowances, are
anticipated to be sufficient to permit the Company to operate its thermal generation plants at forecasted capacity for at least the next several years within the limitations of current SO2 emission requirements.

Clean Air Mercury Rule - The federal government adopted
the Clean Air Mercury Rule in 2005 to regulate mercury air emissions from coal-fired generating plants. That rule was vacated by an appellate court decision in 2008; however, the states in which PGE facilities are located have adopted the following
regulations concerning mercury emissions that could have an impact on the Companys Boardman and Colstrip plants:



In October 2006, the Montana Board of Environmental Review adopted final rules on mercury emissions from coal-fired generating plants in Montana, including
Colstrip, which require compliance with mercury emission limits by January 1, 2010.



In December 2006, the OEQC adopted final rules on mercury emissions from coal-fired generating plants in Oregon, including Boardman, which require compliance with
mercury limits by July 1, 2012. This deadline can be extended by one year under certain circumstances. The OEQC is considering revisions to the rule that would allow an extension of up to two years if needed due to extenuating circumstances
beyond the Companys control.

Regional Haze - In accordance with federal regional haze rules aimed at visibility impairment
in several federally protected areas, the DEQ conducted an assessment of emission sources that has

indicated that the Boardman generating plant may cause or contribute to visibility impairment in several federally protected areas and would be subject to a
Regional Haze Best Available Retrofit Technology (BART) Determination.

In December 2008, the DEQ issued a proposed plan that would require the
installation of controls at Boardman in three phases. PGE estimates that the DEQ plan would cost between $575 million and $636 million (100% of total costs, excluding AFDC, in nominal dollars). PGE has no commitments in place at this time and
cautions that the cost estimates are preliminary and subject to change.

The comment and public input period for the DEQ proposed plan has closed. PGE
commented with an alternative BART/Reasonable Progress proposal that would allow for decision points along the DEQ timeline to provide flexibility to make the most responsible decision on future controls at those points. The OEQC is expected to
adopt a rule in April 2009 now that the public process has been completed. The rule will be submitted to the EPA for approval as part of the Oregon Regional Haze State Implementation Plan (SIP). The Company expects the EPA to issue a decision on the
SIP in early 2010.

Clean Air Standards

STYLE="margin-top:12px;margin-bottom:0px;padding-bottom:3px;line-height:95%; vertical-align:top">Clean Air Act - PGEs operations, principally its thermal generation plants, are subject to thefederal Clean Air Act (CAA). Primary pollutants addressed by the CAA that affect PGE are sulfur dioxide (SO2), nitrogen oxides, carbon monoxide, andparticulate matter. State governments also monitor and administer certain portions of the CAA and must set standards that are at least equal to federal standards. Oregons air quality standards currently equal or exceed federal standards.

PGE manages its air emissions by the use of low sulfur fuel, emission controls, emissionmonitoring, and combustion controls. The SO2 emissions allowances awarded under the CAA, along with expected future annual allowances, areanticipated to be sufficient to permit the Company to operate its thermal generation plants at forecasted capacity for at least the next several years within the limitations of current SOSIZE="1">2 emission requirements.

Clean Air Mercury Rule - The federal government adoptedthe Clean Air Mercury Rule in 2005 to regulate mercury air emissions from coal-fired generating plants. That rule was vacated by an appellate court decision in 2008; however, the states in which PGE facilities are located have adopted the followingregulations concerning mercury emissions that could have an impact on the Companys Boardman and Colstrip plants:



In October 2006, the Montana Board of Environmental Review adopted final rules on mercury emissions from coal-fired generating plants in Montana, includingColstrip, which require compliance with mercury emission limits by January 1, 2010.



In December 2006, the OEQC adopted final rules on mercury emissions from coal-fired generating plants in Oregon, including Boardman, which require compliance withmercury limits by July 1, 2012. This deadline can be extended by one year under certain circumstances. The OEQC is considering revisions to the rule that would allow an extension of up to two years if needed due to extenuating circumstancesbeyond the Companys control.

Regional Haze - In accordance with federal regional haze rules aimed at visibility impairmentin several federally protected areas, the DEQ conducted an assessment of emission sources that has

indicated that the Boardman generating plant may cause or contribute to visibility impairment in several federally protected areas and would be subject to aRegional Haze Best Available Retrofit Technology (BART) Determination.

In December 2008, the DEQ issued a proposed plan that would require theinstallation of controls at Boardman in three phases. PGE estimates that the DEQ plan would cost between $575 million and $636 million (100% of total costs, excluding AFDC, in nominal dollars). PGE has no commitments in place at this time andcautions that the cost estimates are preliminary and subject to change.

The comment and public input period for the DEQ proposed plan has closed. PGEcommented with an alternative BART/Reasonable Progress proposal that would allow for decision points along the DEQ timeline to provide flexibility to make the most responsible decision on future controls at those points. The OEQC is expected toadopt a rule in April 2009 now that the public process has been completed. The rule will be submitted to the EPA for approval as part of the Oregon Regional Haze State Implementation Plan (SIP). The Company expects the EPA to issue a decision on theSIP in early 2010.